Ministry of Communications and Ministry of Commerce, Administration of Foreign Investment in the International Maritime Transport Industry Provisions

Promulgated: February 25 2004
Effective: June 1 2004
Interpreting authority: Ministry of Communications and Ministry of Commerce (MOC and MOFCOM)
Applicability: The Provisions apply to the investment in and operation of international maritime transport business and auxiliary businesses related to international maritime transport (Article 2).
  Investment in and establishment of enterprises to engage in international maritime transport or auxiliary services thereof by investors from the Hong Kong and Macao Special Administrative Regions and the Taiwan region in other provinces, autonomous regions or municipalities directly under the central government shall, mutatis mutandis, be handled in accordance with these Provisions (Article 16).

Main contents: Subject to the approval of MOC and MOFCOM, foreign investors may establish Sino-foreign equity or cooperative joint ventures to engage in international shipping services, international shipping agency services, international ship management services, loading and uploading of international shipments, international maritime container station and depot services, storage and warehousing for international maritime freight, and general services for vessels that they own or operate. Wholly foreign-owned enterprises may engage in storage and warehousing for international maritime freight, and general services for vessels that they own or operate subject to the approval of MOC and MOFCOM (Article 4). The Provisions detail the conditions and procedures for establishment of foreign-invested enterprises to engage in the abovementioned international maritime transport businesses. Foreign investment in foreign-invested international shipping enterprises and foreign-invested international shipping agencies shall not exceed 49% (Articles 5 and 7). Procedures for inclusion of international maritime transport or auxiliary services thereof in their business scope of already established foreign-invested enterprises and procedures for establishment of branches or sub-branches of already established foreign-invested international maritime transport enterprises are also provided (Article 12). Foreign shipping companies may establish Sino-foreign equity or cooperative joint ventures or wholly foreign-owned enterprises to provide general services such as canvassing of cargoes, issuance of bills of lading, settlement of freight and signing of service contracts for vessels that they own or operate (Article 13). From January 1 2004, Hong Kong and Macao service suppliers are allowed to establish wholly-owned enterprises in the Mainland to engage in international ship management services, storage and warehousing for international maritime freight, international maritime container station and depot services and non-vessel operating common carrying services. They are also allowed to establish wholly-owned shipping companies in the Mainland to provide general services such as canvassing of cargoes, issuance of bills of lading, settlement of freight and signing of service contracts for vessels that they own or operate (Article 17).
Related legislation: PRC International Maritime Transport Regulations, Dec 11 2001 and PRC International Maritime Transport Regulations Implementing Rules, Jan 20 2002
Full text is available form our office.